First time buyers

Whether you’re taking your first step onto the property ladder, or you’re a parent or grandparent looking to help your child or grandchild purchase their first home, we are able to access an appropriate mortgage solution that suits your needs.

The market

There are thousands of mortgage products available and many lenders offer specific deals to those taking their first step onto the property ladder. These products could include incentives such as cashback, low arrangement fees or a contribution towards legal costs.

Knowing where to start is often the hardest part with so many options available. Your Fairstone mortgage expert will guide you through the entire process, finding the most appropriate solutions and explaining anything that you are unclear about – without the jargon.

Support from parents

According to a recent study by the Council of Mortgage Lenders, more than half of all first-time buyers were given a helping hand by ‘the bank of mum and dad’,

On average, it now takes eight years to save for a mortgage deposit compared to just a year in 1990. As a result, two in three first-time buyers now receive help from their parents or grandparents.

There are a number of options available:

  • Parents with the available funds could buy a second property for their children to live in or take on a joint mortgage to help secure their first home
  • If you’re prepared to cover all eventualities, you could act as a guarantor which has the benefit of leaving the mortgage in the child’s name as opposed to shared ownership
  • Releasing equity in your home is an option, however, there may be restrictions from lenders, particularly if you are no longer working
  • The larger the deposit the more likely it is that a mortgage will be approved so it could be beneficial to simply gift your child or grandchildren money, although you will need to take the impact of Inheritance Tax into consideration

As with any financial commitment there is no one size fits all solution and the most appropriate course of action for you and your child will wholly depend on your financial circumstances. Your Fairstone mortgage expert can put together a property finance plan that’s tailored to you.

Help to Buy mortgages

This is a range of government backed schemes to help people buy their own home. There are different types of home ownership schemes under the umbrella of Help to Buy.

Fairstone’s experienced mortgage experts can provide tailored Help to Buy mortgage advice to help you decide which scheme is best suited to your personal circumstances.